Home

Analysis of the Company's Consumption Efficiency and Financial Situation Over the Past Period.

- For customers living far away with printing contracts over 10 million VND, the company will deliver the goods to their location at the following preferential price:

Table 8

Preferential rates for shipping by route


STT

Route (Km)

Discount from standard price (%)

1

< 50

0.5

2

50-70

0.6

3

70-90

0.7

4

90-110

0.8

5

110-130

0.9

6

>130

1

Maybe you are interested!

Analysis of the Companys Consumption Efficiency and Financial Situation Over the Past Period.


5. Analyze the company's sales performance and financial situation over the past period.

While conducting production and business activities, enterprises always want what they get back to be greater than what they spend. It is thanks to the difference between spending and receiving that enterprises are able to expand their operations. Consumption activities are the activities for enterprises to recover the capital spent and the profits generated by using that capital. If an enterprise purchases input factors and conducts production while the products created cannot be sold, the enterprise will no longer have capital for production activities in the next business cycles and will face bankruptcy. Thus, consumption activities are the basis for enterprises to have conditions to ensure financial security for the next business cycles. When the goods are consumed, the enterprise will recover the capital spent and make a profit. Thanks to this recovered amount, the enterprise has enough financial resources to conduct activities to purchase input factors for production activities. Also thanks to

The profit earned by the enterprise is favorable for expanding the scale of its production activities. As presented above, production and business activities are continuous and cannot be interrupted. If consumption activities encounter difficulties, it will directly affect the production activities of the enterprise. Enterprises cannot produce haphazardly so that the products cannot be consumed in time or cannot be consumed and must be stored in warehouses. If this happens, the enterprise will quickly lose all its business capital due to both the cost of raw materials and manufacturing costs as well as the cost of storage, and at the same time, the loss of profits if it does not invest in product production. In a market economy, enterprises must base on the market situation to determine the consumption capacity, thereby making appropriate production plans to achieve high economic efficiency.


Previously, under the centralized management mechanism, product consumption activities of enterprises were almost eliminated. Most enterprises only knew how to produce without caring about product quality and product consumption was almost not given attention.


Entering the market economy, consumption activities have been placed in their proper position, as a decisive factor for the existence and development of enterprises. And from here, product consumption activities at Ha Giang Printing Company have received appropriate investment attention, measures to promote consumption have been put into use. In the early period of innovation, although the number of consumed products was not high, compared to the previous period, there has been clear progress. In recent years, in order to improve production and business efficiency, take advantage of abundant human resources and improve the capacity of machinery and equipment, the Company has specialized and diversified products. Therefore, the situation of product consumption

The Company's products have achieved many proud results. To better understand its business activities, we have the following comparison table of indicators over the years:


Table 9

Sales results and financial situation of the company from 1999 - 2000 - 2001 - 2002 and 2003

(unit: Million VND)


Indicators

1999

2000

2001

2002

2003

-Printed pages (Million pages)

43.18

44.8

48

50.6

53.7

1. Revenue

3,240

3,370

3,626

3,834

4,082.5

2. Cost

3,079.5

3,204.7

3,453.2

3,642.6

3,877.5

3. Profit

160.5

165.3

172.8

191.4

205

4. Labor (people)

72

72

72

72

72

5. Average income

0.45

0.501

0.502

0.559

0.565

6. Assets

1,329

2659.2

3,418

3,418

3,518

+ Fixed capital

573.2

2,084

2,582.8

2,258

2,358

+ Working capital

756.7

575.2

835.2

1,160

1,160

In there:






- Labor and Employment

82

162

205

230

225

7. Capital

1,329.9

2,659.2

3,418

3,418

3,518

+ Budget capital

1.119.2

1,680

2,438.8

2,438.8

2,438.8

+ Self-funded capital

210.7

267.1

58.8

123.8

223.8

+ Loan capital


712.1

920.4

855.4

855.4

In there:






- Liabilities

39

78

100

110

100

% of equity/trading capital

43.03

78.37

75.56

66.06

67.03

Ratio % of working capital/working capital

56.97

21.63

24.44

33.94

32.97

Equity/Business Equity Ratio

100

73.22

73.07

74.97

75.69

Loan/Equity %

-

26.78

24.76

25.03

24.31

2.1

2.07

2.05

2.09

2.25

NPT/Ng.Equity

0.03

0.04

0.04

0.04

0.04

Profit Ratio/Capital

12.07

6

5.06

5.6

5.83

Profit/revenue

4.95

4.91

4.77

4.99

5.02

Revenue/Asset Value

2.44

1.27

1.15

1.12

1.16

TSLD & DTNH/NPT

(Source: Financial report - Accounting Department)


Looking at the business performance we see:

- Regarding annual revenue increasing steadily by ~ 5%, that is an encouraging target, it allows the Company's leaders to come up with new strategies to attract more attractive and more certain contracts, especially the increasingly expanding capital scale, especially fixed capital. Through that, we can see that the company's production scale has increased, new and relatively modern machinery and equipment have made many types of products, diverse in size and design, high in quality, attracting many orders from customers.

- Total profit increased over the years. In 1999 it reached 160.5 million, then in 2003 it reached 205 million, an increase of 27% compared to 1999. This indicator is the most important for the Company, it strongly promotes all production activities and directly affects the business efficiency of the Company. However, the profit increase over the years is not very high due to the increasing price of input materials, old and outdated machinery and equipment that often need maintenance and repair... these things have led to the total cost of production and business activities of the Company increasing, so the cost of products is getting higher and higher. Therefore, the competitiveness of the Company is reduced.

- The implementation of state budget payment also increases steadily every year, which means that the Company has fulfilled its obligations to the state budget.

- Average labor does not increase but also contributes to solving employment for local workers and for society.

- Increased income helps workers feel secure with their material life and wholeheartedly focus on improving their skills and productivity, helping the company achieve better and better results.

- The Company's operating capital has been relatively stable over the years. The ratio of working capital/working capital has decreased, which shows that the Company's inventory is not large and not stagnant; Equity/Total Capital is from 73 - 100%; Debt to Equity ratio is <1; Current and quick payment capacity is on average 2.1. From the above results, we can see that the Company's financial situation is healthy.

Thus, after 4 years, through many forms of organizational management transformation, Ha Giang Printing Company has achieved significant successes, overcome initial difficulties and increasingly stood firm in the market that increasingly demands diversity in designs and high product quality.

In addition to the business goal of profit that any enterprise pursues, reputation and quality are the criteria that Ha Giang Printing Company puts first. Over the years, the Company's products have been increasingly improved, the quality is trusted by customers, which is shown through this year's revenue being higher than last year, the number of standard-sized printed pages (13 x 19) has also increased. To achieve that, the Company's Board of Directors and CBCVN agree on the view: " All for quality ". Therefore, in the early years of establishment, the Company did not have a KCS department, but now it has established a KCS team with its own remuneration policy. The task of the KCS team is to check product quality at all stages: from the quality of materials in the warehouse to the finished product.

In addition, the Company builds a warehouse system suitable for the nature of production, ensuring the quality of materials and finished products while facilitating the production process.

Thus, through some of the results that Ha Giang Printing Company has achieved in recent years, we can affirm that: Ha Giang Printing Company is a successful business company.

effective, constantly innovating and developing, increasingly maintaining the market. The company always focuses on implementing well the after-printing support services, serving all the demands and problems of customers. In addition, promoting advertising is a process of activities including many contents from building goals on the basis of market orientation to establishing long-term cooperative relationships with old customers, while attracting the trust and attention of new customers.

To do well the above tasks with the goal of attracting customers, the production costs are also very significant, the focus is on the business costs for product consumption. The business costs for product consumption are all costs associated with consumption activities. Here, we only analyze the situation of sales and management costs of the Company.


Table 10


selling and administrative expenses

(unit: 1000)


Target

1999

2000

2001

2002

2003

Selling and administrative expenses

360.5

380.6

432.44

435.6

464.75

In there:






+ CF tools, instruments

23.7

23.98

27.24

27.44

29.55

+ CF repair fixed assets

118.15

127.5

142.7

143.7

165.8

+ CF shipping

55.3

57.9

64.87

65.34

65.25

+ CF preservation

44.3

45.7

51.9

52.3

54

+ CF transaction

107.91

93.92

92.73

98.07

99.15

+ Taxes and fees

11.14

31.6

53

48.75

51

(Source: Financial report - Accounting Department)

According to the above table: Sales and management costs over the years have not increased significantly, but compared to the total costs in a year (revenue figures

Using comparison taken from Table 5 - 5-year business results) accounts for 11 - 13% of total costs. The reason is that the cost of repairing the Company's assets mostly has a long usage time, depreciating nearly 50% of some assets have expired but the Company has not had the conditions to replace them, so the large cost of fixed assets is an objective reason.

Transaction costs: also relatively large due to poor management and here there is also the reason for wanting to attract customers to increase revenue.

The production and business activities of any enterprise require the company's management to determine the production and business plans of the company in the short term and in the long term. To determine the content of these plans, it is necessary to base on the operating results of previous periods and must be based on the market context plus the existing potential of the enterprise.

The product consumption activity of an enterprise is an activity that plays an important role in the existence and development of the enterprise. Therefore, in order to achieve high efficiency in product consumption activities, it is necessary to develop a specific plan for future activities.

In fact, the company's product consumption activities always exceed the set plan. That is shown in the following table:


Table 11


implementation status of consumption plan

(Unit: Million VND)


2001

2002

2003

KH

T.Te

% KH

KH

T.Te

% KH

KH

T.Te

% KH

3,300

3,626

109.9

3,500

3,834

109.6

3,700

4,083

110.4

(Source: Department of Planning and Investment)

Through the above data table, we can see that the company always exceeds the set plan. Specifically:

+ In 2001, the consumption plan was set at 3,300 million VND, the actual result was 3,626 million VND, exceeding the plan by 9.9%.

+ In 2002, the consumption plan was set at 3,500 million VND, the actual result was 3,834 million VND, exceeding the plan by 9.6%.

+ In 2001, the consumption plan was set at 3,700 million VND, but the actual sales were 4,083 million VND, an increase of 10.4% compared to the plan.

To achieve the above results, the Company has actively implemented promotional measures to stimulate customer demand such as: Discounts for large quantities of printed products, shipping to the customer's requested location without charging shipping fees.... Due to such activities, the company's revenue has increased day by day.

6. Analyze the causes of fluctuating consumption situation

Currently, the printing industry is one of the fields with a rich market and high competition density - especially in the center of the province. Ha Giang Printing Company identifies its main market as Ha Giang province, where many agencies and units have the need to print and distribute books, newspapers, magazines and papers.

However, in the current Ha Giang market, the Company is facing fierce competition from private printing establishments. Therefore, the Company always focuses on providing good after-printing support services, serving all the demands and problems of customers. In recent times, the Company has continuously improved the quality and design of its products, so customers have accepted the Company's products because of their relatively good quality and reasonable prices. In addition, promoting advertising is a process that includes many contents from building goals based on market orientation to establishing long-term cooperative relationships with old customers, while attracting the trust and attention of new customers.

Comment


Agree Privacy Policy *